JAMB Past Questions and Answers - Page 174

866.

if a firm has a turnover of N50 000 and the cost of goods sold is N40 000, what is the percentage of gross profit on sale?

A.

30.5%

B.

20.5%

C.

20.0%

D.

10.0%

Correct answer is C

No explanation has been provided for this answer.

867.

The circulating capital of a business enterprise is classified into?

A.

cash, work-in-progress and debtors

B.

cash,vehicles, land and buildings

C.

debtors , stock of raw materials and fittings

D.

pre-payments, debtors and equipment

Correct answer is A

Circulating capital also known as working capital is money being used for the core operations of a company. Circulating capital includes cash, operating expenses, raw materials, inventory-in-process, finished goods inventory, and accounts receivable.

868.

The financial instrument that entitles the holder to receive dividend and capital gains is a?

A.

share

B.

bond

C.

bill of exchange

D.

treasury bill

Correct answer is A

Share capital is a financial instrument that allows its holders units of equity ownership in a corporation. Shareholders enjoy distribution in any residual profits, if any are declared, in the form of dividends. Shareholders may also enjoy capital gains if the value of the company rises.

869.

The type of partnership in which all partners are jointly liable in bearing risk is?

A.

limited partnership

B.

partnership-at-will

C.

ordinary partnership

D.

industral partnership

Correct answer is C

No explanation has been provided for this answer.

870.

Partnerships are most effective where?

A.

the partners are family friends

B.

professionals are involved

C.

members can easily raise enough capital

D.

government regulations are favorable

Correct answer is B

No explanation has been provided for this answer.